Can someone explain how to do this? I don't necessarily want the answer, just some guidance or steps to take. I'm really just looking for an explaination on how to do this so I can learn to do it myself.

MINI CASE Sangria's WACC 1. Calculating Sangria's WACC Sangria is a U.S.-based company whose products aim to promote happy, low-stress lifestyles. Let's calculate Sangria's WACC. Its book and patketyaluc balance sheets are: Sangria Corporation (Book Values,$ millions) Asset Value $1,000 500 Debt 500 Equity $1,000 l $1,000 Sangria Corporation (Market Values,$ millions) Asset value $1,250 500 Debt Equity $1,250 1,250 We calculated the market value of equity on Sangria's balance sheet by multiplying its current stock price (s 7.50) by 100 million, the number of its outstanding shares. The company's future prospects are good, so the stock is trading above book value (S7-50 vs. S5.00 per share). rates have been stable since the firm's debt was ssued and the book and market values of debt are in this case Sangria's cost of debt (the market interest rate on its existing debt and on any new borrowing) 6%. Its cost of equity (the expected rate of return demanded by investors in Sangria's stock) is 2.4%. value balance sheet shows assets worth $1,250 million. Of course we can't observe The market this value directly, because the assets themselves are not traded. But we know what they to debt and equity investors ($500 750 si 250 million). This value is entered on the eft of the market value balance sheet. fitable and pays taxes at the marginal rate of 35% is consistently pro Question 1 What is sangria's after-tax WACC? MINI CASE Sangria's WACC 1. Calculating Sangria's WACC Sangria is a U.S.-based company whose products aim to promote happy, low-stress lifestyles. Let's calculate Sangria's WACC. Its book and patketyaluc balance sheets are: Sangria Corporation (Book Values,$ millions) Asset Value $1,000 500 Debt 500 Equity $1,000 l $1,000 Sangria Corporation (Market Values,$ millions) Asset value $1,250 500 Debt Equity $1,250 1,250 We calculated the market value of equity on Sangria's balance sheet by multiplying its current stock price (s 7.50) by 100 million, the number of its outstanding shares. The company's future prospects are good, so the stock is trading above book value (S7-50 vs. S5.00 per share). rates have been stable since the firm's debt was ssued and the book and market values of debt are in this case Sangria's cost of debt (the market interest rate on its existing debt and on any new borrowing) 6%. Its cost of equity (the expected rate of return demanded by investors in Sangria's stock) is 2.4%. value balance sheet shows assets worth $1,250 million. Of course we can't observe The market this value directly, because the assets themselves are not traded. But we know what they to debt and equity investors ($500 750 si 250 million). This value is entered on the eft of the market value balance sheet. fitable and pays taxes at the marginal rate of 35% is consistently pro Question 1 What is sangria's after-tax WACC